Xi Readies Bargaining Chips for US Trade War After Biden Curbs

China got a head start on a looming trade war with the US by showcasing a new range of tools it’s prepared to use if Donald Trump makes good on his threat to punish the world’s second-biggest economy with tariffs.

Restrictions imposed this month by the Biden administration on China’s access to vital components for AI chips provoked Beijing into providing the world a preview of its targets in a second trade war. Days after the curbs, President Xi Jinping opened a probe into Nvidia Corp. and banned the export of several rare materials with military applications. Beijing has also limited sales to the US and Europe of key components used to build drones.